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· The Company has now successfully pulled the drill string out of hole at Tai-3
· Wireline operations and initial logging underway
· Downhole sampling to commence once logging is complete, with capability for onsite analysis
https://www.londonstockexchange.com/news-article/HE1/operational-update/16209978
The question is do you believe they will be delivered and when? That after all what the game is all about, if you believe those will be delivered near term then buy whilst the SP reflects their absence.
I still think we are likely to see the GSA and 25 year development licence before year end and first gas and drill within the first half of 24.
What do others think?
Helium One Global uncovers promising helium results in Tai-3 well in Tanzania
https://www.thecitizen.co.tz/tanzania/news/business/helium-one-global-uncovers-promising-helium-results-in-tai-3-well-in-tanzania-4427196
Tai-3 well has successfully reached a TD of 1,448m measured depth ("MD") having encountered weathered crystalline Basement
· Elevated helium shows, up to six times above background, have been identified in the Lower Karoo Group and Basement targets
· Helium shows increased in frequency and quality with depth, as anticipated
· Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud
· Forward plan, following maintenance and safety checks, is to pull out of hole and rig up to run wireline for formation evaluation and downhole gas sampling
Well fair enough SVS However, Ruvuma is likely to provide many multiples of any revenue produced by the AD plant between now and end 2024, in fact it already has, hence why I think it should be of utmost importance to enable any developments here.
Good luck
I don't think my earlier expectation has changed, Development licence and GSA before year end ( I think the 3D results are also due then?) & then production could well be Q1-24 and drilling of the third well CH1 in Q2
Lets see what the operational update that is due confirms.
Https://twitter.com/EnergyVoiceNews/status/1719300679821390194
“ARA is now well positioned to take decisive steps towards developing the asset and ensuring that the natural gas produced from the Ntorya field is introduced to the market as quickly as possible."
Https://twitter.com/EnergyVoiceNews/status/1719300679821390194
Highlights
· Tai-3 well has successfully encountered helium shows whilst drilling in the Lake Bed Formation and the Karoo Group
· The Basement reservoir target has come in deep to prognosis and is yet to be reached; this has extended the drilling period
· Well depth is currently at 1,445m measured depth ("MD"), with well total depth ("TD") now expected to be at ~1,550m MD
· On Sunday 29th October, whilst drilling the final section, the rig encountered a mechanical and an electrical fault which resulted in a temporary rig shut down to allow for troubleshooting and repairs
· Once drilling recommences, the Basement target should be reached quickly and this will be followed by a comprehensive wireline programme to fully evaluate the helium shows encountered whilst drilling
Details
The Tai-3 well has encountered helium shows whilst drilling in the Lake Bed Formation and the Lower Karoo Group. These measurements were made on the Micro Gas Chromatograph whilst drilling and have also been calibrated with the portable mass spectrometer to confirm the presence of helium in the mud gas.
The Company has not yet reached the third reservoir target of Basement and were hoping to reach well TD yesterday. The Basement target is now over 400m deeper than prognosed, but cuttings have indicated the presence of weathered metamorphic material, indicating that the well is now very close to the target interval.
On Sunday 29th October, whilst running back in hole following a drill bit change, there was a seal failure on the iron rough neck which is used to make and break connections of drill pipe. The Company is confident that this part can be replaced in-country but will require a few days to source and repair.
Following the component failure in the rig carrier on 4th October and prior to yesterday, the Predator 220 drilling rig had continued to perform well.
Once drilling has recommenced and has reached TD in Basement, the Company will then rig up for wireline operations and commence logging in order to gain additional information on reservoir characteristics, as well as to identify and sample any gas-bearing intervals. The Company will make further announcements in due course.
Lorna Blaisse, Chief Executive Officer, commented:
"We are pleased with the current results of Tai-3 with encouraging helium shows encountered in the Lake Beds and the Karoo. These initial results still need further evaluation to determine the full extent of what we have at Tai and where there may be gas-bearing intervals.
Whilst it's frustrating to have suffered another small setback with the rig, we are confident we will resolve these issues quickly so we can get back to drilling and target the remaining reservoir in the Basement."
So what are peoples thoughts on these being delivered in the next few weeks? Both are huge game changers for the company and the doorway to production
My thoughts are if they are delivered then production could well be Q1-24 and drilling of the third well CH1 in Q2